Notice from the State Administration of Foreign Exchange on Cases of Illegal Online Forex Trading Platforms

In order to fully implement the spirit of the 19th National Congress of the Communist Party of China and the 2nd and 3rd Plenary Sessions of the 19th Central Committee, and effectively prevent and resolve financial risks, the stateforeign exchangeThe Administration has conscientiously implemented the special rectification work deployment of Internet financial risks, and actively promoted the rectification work of illegal online foreign exchange speculation platforms. Now, we report the cases investigated and dealt with recently as follows:

After investigation, it was found that Shenzhen Xinke Business Consulting Co., Ltd. provided business promotion services for the online forex trading platform operated by its overseas shareholders, recruited domestic investors to participate in overseas forex deposit trading, and illegally charged service fees, violating Article 12 of the Foreign Exchange Management Regulations of the People's Republic of China, with a malicious nature. The Shenzhen Branch of the State Administration of Foreign Exchange has issued a warning, ordered correction, and imposed a fine of RMB on the company in accordance with Article 41 of the Foreign Exchange Management Regulations of the People's Republic of China118Ten thousand yuan.

At present, the domestic regulatory authorities have not approved any institution to conduct or act as an agent for conducting foreign exchange deposit business within the country. According to the 'Regarding the Strict Investigation and Punishment of Illegal Foreign Exchange'futuresNotice on Foreign Exchange Deposit Trading Activities (Zheng Jian Fa Zi)1994〕165According to a joint document issued by the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the State Administration for Industry and Commerce, and the Ministry of Public Security, any unauthorized institution shall carry out activities without approvalForeign exchange futuresTrading with foreign exchange deposits is illegal; It is illegal for clients (units and individuals) to entrust unapproved registered institutions to conduct foreign exchange futures and foreign exchange margin trading, whether using foreign currency or RMB as margin. The State Administration of Foreign Exchange and its branches will continue to conscientiously implement the deployment requirements for preventing and resolving financial risks, steadily and orderly carry out the clean-up and rectification of illegal online forex trading platforms, and maintain national financial security and stability.

Source: State Administration of Foreign Exchange